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Highlights
- Investors are attracted to AIM-listed stocks as these companies are currently in the business cycle’s early stage and offer higher returns.
- Mosman Oil and Gas Ltd., Hummingbird Resource Ltd. and Hardide Plc are in focus today.
Many growth investors prefer investing in the AIM index, as these companies are in the early stage of the business cycle and investing in such stocks comes under the category of growth investment. Investors who buy quality growth stocks in the initial years of the business cycle and stay invested for the long-term tend to make high returns.
However, AIM stocks do have some risk associated. For example, many AIM-listed companies are newly formed, and if the company’s business model fails to generate revenue and profitability, it affects its share price and loss to shareholders. Hence, investors should be cautious and invest only in those AIM stocks with an excellent business model and superior management.
Let us look at 3 AIM-listed stocks and explore their investment prospects:
Mosman Oil and Gas Ltd. (LON:MSMN)
The company operates in the development of oil and gas projects. Its flagship project is located in Central Australia, where it owns 100% interest. Also, it has other oil and gas assets in the United States.
The company reported a rise in oil and gas production in the first six months of 2021. The total output rose to 40,187 BOE from its five different project sites. Also, the company acquired Nadsoilco and increased its stake by 25% in Falcon-1 well in July 2021, which will further boost its oil production capacity. The company’s revenue is likely to have a positive impact of the recent rise in crude oil and natural gas prices in the international market.
Mosman Oil and Gas Ltd shares trade at GBX 0.15, on 13 October at 8:15 am GMT+1 with a market cap of £5.92 million.
Hummingbird Resource Ltd. (LON:HUM)
FTSE AIM-listed company operates in the exploration and production of precious metals. Its mining projects are located in southern Mali, Guinea, Liberia.
The company generated revenue of USD 87 million by selling 46,809 ounces of gold at an average price of USD 1,794/oz during the first half of 2021. The company’s gold production is likely to receive a significant boost from next year as its Kouroussa Gold Mine project construction is expected to begin in the fourth quarter of 2021. The company has secured funding of USD 100 million from Coris Bank for the project and expects average gold production of 120,000 and 140,000 ounces in the first three years. The company is expecting the first gold pour from the mine in the second quarter of 2023.
Hummingbird Resource Ltd shares trade at GBX 20.88, on 13 October at 8:15 am GMT+1 with a market cap of £82.46 million.
Hardide Plc (LON:HDD)
The company manufactures and sells tungsten-carbide based coating technology. The patented technology offered by the company is used in a wide range of industrial components. In addition, it provides base material and custom coating of components like valves, pumps, blades, and many others.
The company provides advanced coating technology across diversified industrial groups. Also, recovery in the manufacturing sector after the Covid-19 pandemic boosted the orders for the company. The company’s order value was at £2.5 million, a rise of 52% in the second half of the financial year ended 30 September 2021. As a result, the company anticipates improved performance in FY22, primarily due to diversification of client base, new product development, and awareness and benefits of the company’s coating products.
Hardide Plc shares trade at GBX 39.00, on 13 October at 8:15 am GMT+1 with a market cap of £21.79 million.
